Cologix Increases Credit Facility To $165 million
December 4th, 2013 By: Jason Verge
Cologix has armed itself with a substantial credit facility to fuel further acquisition and expansion. The data center and interconnection company has increased its credit facility to $165 million, with amended terms to enable further growth initiatives. The credit facility also provides an option to flex further through a $50 million term loan. Cologix said the credit facility was “substantially oversubscribed,” indicating strong lender interest in participating.
The company has been busy in 2013. It acquired the JAX meet me room in Jacksonville, expanded into a new facility in Vancouver, and opened a second site at the Dallas INFOMART. It’s also been busy expanding its interconnection product to new markets. The credit facility will allow the company to keep this momentum going into 2014.
“Since inception, Cologix has focused on building a fully integrated network-neutral interconnection-focused colocation platform through acquisition and expansion” said Brian Cox, Chief Financial Officer, Cologix. “We are pleased with the market’s response and look forward to putting the capital to work for the benefit of our customers, employees and investors. It was most pleasing to have all four existing banks participate in the new facility and we are delighted to welcome the five new lenders to the group.”
RBC Capital Markets and TD Securities are lead arrangers for the transaction with Royal Bank of Canada serving as Administrative Agent and TD Securities serving as Co-Syndication Agent. The remainder of the syndicate includes Scotia Bank, Capital Source, ING, JPMorgan Chase, Bank of America, CIT, and Raymond James.
“RBC Capital Markets has been Cologix’s lead arranger since 2011 and we are pleased with the strong level of lender interest for this transaction,” said Scott Johnson, Managing Director, RBC Capital Markets. “Furthermore, the debt upsizing positions the company well for both organic growth opportunities and potential acquisitions.”
TeliaSonera Deploys PoPs in Jacksonvile and Dallas
The company additionally announced that international carrier TeliaSonera has deployed Points-of-Presence (PoPs) in Cologix’s 421 West Church Street data center in Jacksonville, FL and Dallas INFOMART. This is an expansion of a relationship that started in Toronto
“Through our relationship with TeliaSonera in Toronto, we have seen firsthand their impressive growth and we are committed to validating their choice to trust Cologix to support their growth in both Dallas and Jacksonville,” stated Jay Newman, Chief Sales Officer, Cologix. “TeliaSonera’s expansion into Jacksonville also reinforces its position as an emerging and dynamic Latin American as well as North American interconnection market.”
Cologix is headquartered in Denver, Colorado, with facilities in Dallas, Jacksonville, Minneapolis, Montreal, Toronto and Vancouver. With more than 330 network choices and sixteen prime interconnection locations, Cologix currently serves over 600 carrier, managed services, cloud, media, content, financial services and enterprise customers.